UK sales of Aperol and Campari drive group growth

Campari’s stable of brands continue to drive “sustainable growth” for the group, including Aperol and Campari, where sales rose in the UK during the first three months of the year.

In the first quarter of 2018, Campari Group reported total sales of €336 million with gross profit of €200 million.

An organic sales rise of 2.2% was offset by a decline of 8.2% in value on a reported basis compared to the year before, thanks to after the exchange rate and perimeter effects, said the group.

However, a “very favourable sales mix” driven by Aperol, Campari, Grand Marnier and Wild Turkey in core developed markets led to a gross profit organic growth of 6.7%, ahead of organic sales.

This included the UK, where Aperol, the group’s largest brand, saw “very strong growth”, along with other high potential and seeding markets such as the US, Brazil, Russia, Australia, Spain and Global Travel Retail.

Global sales of the brand rose 22.8%.

And while sales in North, Central and Eastern Europe were still characterised by “high volatility", the region's overall positive organic growth of 6.9% was mainly driven by the UK, where sales were up 13.1% thanks to Aperol, Bulldog, Campari and Magnum Tonic.

Campari continued its positive momentum, up 6.6% organically, driven by the UK, US, Jamaica, Spain, as well as the brand’s core Italian market.

Bulldog also rose by 14.1% on the back of a good performance in UK, Germany, Portugal, Italy, Spain and Global Travel Retail.

“In the first quarter 2018 we achieved a positive top line organic growth, despite the impact of emerging market softness and phasing effects magnified in a small quarter,” Group CEO Bob Kunze-Concewitz, said.

“Profitability indicators showed a sustained organic growth, ahead of sales organic development, as they benefitted from a very favourable sales mix driven by the outperformance of the key high margin combinations by brands and regions, particularly Aperol, Campari, Grand Marnier and Wild Turkey in the core developed markets. Concomitantly, on a reported basis, the overall growth rates were impacted by the forex effect as well as the divestments of non-core businesses.”